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Who pays a buyers agent?
This is a much debated question among real estate professionals. The import of the question has to do with common sense perceptions and common law conventions that "he who pays the piper calls the tune". Buyer agents take the position that the commission fee comes from "the proceeds of the transaction". Sure the seller pays his agent and the buyer doesn't but all the money actually comes from the buyer. If the buyer didn't pay there would be no transaction.
But in the most basis terms — no matter how payment is set up, the buyer walks away with the house and the seller walks away with 95% of the agreed upon purchase price.
So you decide.
January 22, 2008 in Agency Matters | Permalink
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Comments
When you really think about it, it is a no brainer for a buyer to employ the services of a very experienced buyers agent that will identify the property, negotiate the terms, walk the buyer through the process, and negotiate inspection issues. At no dollar cost to them? It's a "No brainer!"
Posted by: Prince William Homes | Mar 1, 2009 8:37:01 PM
As a REALTOR in the GTA I see there are a few more issues for the buyer to consider when they contimplate hiring and offering to pay a "Buyers Agent" for services. The banks are conditioned to work off of the offer, when the buyer employs the agency directly chances are the fee / commission they are paying the agent will not be shown in the offer some of the banks and lenders are flexable and will work with the buyer that chooses to go this route many are not able to execise that sort of flexability. When an offer is submitted and land transfer tax is calculated it is on the agreed upon price between the Buyer and Seller if the buyer is able to pay their agent outside of the transaction the buyer will save first on the Land transfer tax and possibly on taxes as they may be able to lower the assesment because of a lower sales price. So this is a new world that buyers, sellers, banks and agents all need to react and interact differently and as Buyer agency becomes more intrenched in the industry many adjustments will be made.
Posted by: Phil Brown | Jan 24, 2008 10:17:09 PM
As a Realtor from Edmonton Alberta, it's interesting to see that Ontario is facing this same battle. We too are debating this issue, and I don't know if there's ever going to be an end to it until the industry moves to a dedicated agency relationship model. I know that we, as Realtors, will fight that change to the bitter end.
What I know is that you will see the change before we do, as Ontario is a lot more progressive in this regard than we are in Edmonton Alberta.
Keep blogging!
John
Posted by: John Carle | Jan 23, 2008 2:54:26 PM
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